The Nigerian committee summoned the CEO of Binance on suspicion of financial crime
Nigeria's House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng to appear before the committee on suspicion of terrorism financing and money laundering.
According to a local news outlet, Punch, the committee's chairman, Ginger Onusibe, issued an ultimatum to Binance management to appear before the committee on or before March 1, 2024.
The Governor of the Central Bank of Nigeria (CBN) raised concerns about Binance on February 27, accusing the exchange of “suspicious flows” in 2023.
Onwusibe Binance warned that if the summons is ignored, the committee will exercise its constitutional powers and take necessary action. According to Punch, the committee, in a letter signed by Onwusibe on December 12, 2023, requested that Teng appear in court on December 18, 2023.
Onwusibe expressed his disappointment that he was not present at the Teng despite many invitations. Onwusibe emphasized that he sees complete disregard for the existing laws governing business and financial activities in the country.
Onwusibe reiterated the committee's commitment to fight financial crimes, stressing that the constitution empowers them to protect Nigerians from financial crimes, especially those involving foreign companies.
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The Office of the National Security Adviser has also reportedly arrested two senior Binance officials in the Nigerian capital, Abuja. On Wednesday, February 28, Binance removed the naira from its peer-to-peer (P2P) service amid an attack on the crypto exchange.
The P2P feature allows users, buyers and sellers to trade without involving a third party. It gained popularity in Nigeria in 2021 following the government's ban on the thriving crypto industry during the administration of former President Muhammadu Buhari.
However, in December 2023, the CBN lifted a two-year ban on crypto trading by banks and issued directives to simultaneously regulate virtual value service providers. In the year In 2022, Nigeria was the second country to launch a central bank digital currency. In February, the African Stablecoin Consortium launched the Nara-Peg CNGN stablecoin in the CBN's regulatory sandbox.
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